The contract allows an annual uplift. It has never been applied.

Most price rises are hard because they have to be won. This one was already won, and then quietly given back, year after year.

By Steve 5 min read
Abstract bridge artwork for The contract allows an annual uplift. It has never been applied.

There is a particular kind of margin loss that leaves no fingerprints. Nobody discounted. Nobody caved in a negotiation. The contract contains a clause permitting an annual adjustment, indexed, capped, or simply at the supplier’s discretion with notice, and every year the date passes without anyone acting on it. The right was negotiated, agreed and signed. It was then handed back for nothing. This is a different problem from the general question of whether to raise prices, and it deserves to be treated separately. A price rise on an existing…

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